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The AAPG/Datapages Combined Publications Database

New Orleans Geological Society


An Introduction to Central Gulf Coast Geology (1991)
Pages 211-216

Oil & Gas Law for the Louisiana Geologist

Robert W. Sabate


The geologist who does not aspire to management or entrepreneurship might get along very well in complete ignorance of oil and gas law. However, anyone responsible for operations, for advice to non-oil investors, or for project economics, whatever his workaday discipline, must be able to predict with some confidence what percentage of revenue from a proposed well will be lost to others. Production is shared by the owner of mineral rights, the overriding royalty owner, unit interest owners, the State, the federal government, and by others. Whatever is left goes to the well's owners, according to the effects of the laws that will be discussed below: basic mineral law, administrative rules, unitization, and common documents. Both the law and our business are dynamic. There is little purpose in memorizing changeable rules. Therefore, this article is devoted to principles. Its purpose is to alert the geologist to the need for professional assistance from landmen, lawyers, and other consultants.

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